Cherie Shepard is director of packaging, material handling & processing for Direct Recruiters. For over 10 years she has helped identify exceptional sales, sales management, and engineering candidates and bring them together with her clients assisting both to navigate complex hiring needs. Cherie is committed to performance, quality, and positive results. To stay current with industry news and trends, she routinely travels to trade shows and networking opportunities to meet with industry leaders.
Dependent upon your perspective, the concept of artificial intelligence (AI) invokes one of two opinions: One, eventually the machines will rule the world. Or two, you appreciate the benefits of modern technology.
But either way, one thing is certain: The human workforce relinquishes a bit of responsibility with each technological advancement. The late theoretical physicist Stephen Hawking assumed technology would eventually cause our demise. He theorized that it “could spell the end of the human race.” Without a doubt, artificial intelligence coupled with the Internet of things (IoT) devices will impact not just the manufacturing sector, but every industry within the job market.
These technologies, once considered science fiction, are integrated into many aspects of our daily lives. Modern manufacturing is programmed to rely on software and smart devices. And smart phones have been an integral part of industrial engineering for over a decade. Modern technologies are changing the way we work and live. Notions aside, we can agree that AI and IoT will transform every sector.
Definition of Artificial Intelligence (AI)
Before we go any further into our discussion, let’s define these two terms: Artificial intelligence and internet of things. Artificial intelligence (AI) has been defined as “the ability of a digital computer or computer-controlled robot to perform tasks commonly associated with intelligent beings.”
As pointed out by Bernard Marr earlier this year, AI is traditionally utilized for one of three purposes:
To build systems that think exactly like humans do (“strong AI”)
To allow systems to work without figuring out how human reasoning works (“weak AI”)
To use human reasoning as a model but not necessarily the end goal
Companies such as Apple, Amazon, and Facebook utilize machine learning to improve customer experience. We see technologies such as Siri, Alexa, and Google Maps, seamlessly interwoven into our daily lives to provide a more efficient lifestyle. On the other hand, manufacturing plants are utilizing robots and machine learning to optimize their operations on the factory floor.
Definition of Internet of Things (IoT)
In the past few years there’s been increasing buzz about the Internet of Things (IoT) along with some confusion. Jacob Morgan provides a concise definition: “Simply put, this is the concept of basically connecting any device with an on and off switch to the Internet (and/or to each other).”
With the widespread adoption of Wi-Fi, connecting devices to an Internet connection has become quite simple. And now, practical appliances such as your television, coffee maker, and refrigerator can all be a part of the IoT. However, the practical implication of IoT technology goes far beyond the home. Within the next two years, it’s projected there will be 4 IoT devices for every human being—that’s more than 24 billion IoT devices across the globe.
The appeal of AI and IoT
The President of the Future of Life Institute, Max Tegmark, once said, “Everything we love about civilization is a product of intelligence, so amplifying our human intelligence with artificial intelligence has the potential of helping civilization flourish like never before—as long as we manage to keep the technology beneficial.“
As AI and IoT technologies are adopted, there’s a responsibility to ensure they remain beneficial to enterprise and humanity as a whole. So far, the result has led to efficient manufacturing processes. We’re able to accomplish more in less time and with fewer resources. And in general, today’s workforce has benefited from these efficiencies. Now employees have instant access to needed information. Connected networks have provided automated manufacturing processes that were previously slow and even dangerous to the human workforce.
But at the same time, machine learning could result in a negative impact on employment as a whole. Several years ago, in an article titled “Will Robots Steal Your Job?”Farhad Manjoo imagined this potential.
At this moment, there's someone training for your job. He may not be as smart as you are—in fact, he could be quite stupid—but what he lacks in intelligence he makes up for in drive, reliability, consistency, and price. He's willing to work for longer hours, and he's capable of doing better work, at a much lower wage. He doesn't ask for health or retirement benefits, he doesn't take sick days, and he doesn't goof off when he's on the clock.
The ramifications of AI and IoT
The long-term implications of these technologies are still uncertain. Whether the impact is positive or negative, manufacturing is sure to feel the result.
Workers are no longer competing solely with a human workforce. Even some of the most skilled workers could potentially lose their jobs to a machine. Every day computers are becoming more efficient with processing human problem-solving skills. As a result, machine learning is set to disrupt nearly every role.
Additional security measures need to be considered. As we become more connected within the workplace, employees are exposed to new threats. Data breaches impact the organization and the employees within. Software that serves to help the company personnel can also provide opportunities to malicious threats.
Increasing wages are one of the most obvious economic benefits to employees. However, increasing wages have led to the development of automation. We’re already seeing workers being replaced by machines. So far, many of the affected jobs have been low-paying ones that require little experience or education. However, machine learning will allow technology to replace even technical jobs. Further into his 2011 article, Farhad Manjoo noted that even attorneys could be susceptible to AI’s impact.
However, nearly in the same breath, Manjoo notes that technology sometimes replaces workers in the short run. Then, over time, technological improvements lead to economic growth. We can all agree with him when he says, “Economic growth improves prospects for workers across a range of industries.”
In spite of economic growth, there’s a cautionary tale we should be aware of. When we become dependent on technology, we often lose the skills that technology has replaced. We’re already seeing the impact smart phones have had on simple memorization. Science proves that an unused muscles leads to atrophy. Few of us can recount a phone number without relying on the use of our phone.
Working alongside AI and IoT
To a certain degree, we all fear the unknown. Despite the growing optimism, there’s a certain amount of skepticism that follows. What function will be automated? What position will be replaced by a machine?
These are legitimate concerns within the manufacturing industry. Research on the impact of AI within the workforce presents two polarizing viewpoints. It’s seen as extremely beneficial in efficiency. But at the same time it’s believed to be the biggest employment disruption since the last Industrial Revolution.
Recently Georgios Petropoulos, an industrial organization researcher, outlined what roles he believes to be most directly impacted. He argues that mid-level jobs requiring routine manual skills are at risk. “In the long run, initial labor displacement effects of jobs with routinized manual or cognitive skills, as in previous industrial revolutions, will be compensated for by the growth in non-routine jobs at the high and low end of the economy.”
But rather than worrying about the what-ifs, manufacturers should embrace the positive implications that AI and IoT can provide. Working alongside AI and IoT will lead to the following:
First, manufacturing stands to benefit from a productivity perspective. Artificial intelligence will be able to reduce, and eventually eliminate, customary data collection. This will free up employees to engage in the more rewarding aspects of their jobs. Rather than viewing AI as an employment threat, it should be seen as an opportunity for more efficient manufacturing.
Second, working alongside these technological advancements will demand new security and data-collection protocols. As IoT devices are further adopted, there will be more opportunities for outside threats. The idea may sound silly, but an integrated smart home could potentially be hacked through television providing access to someone’s personal records.
In today’s interconnected world, companies need to provide trust alongside innovation. Within manufacturing, AI and IoT will continue to expedite processes, create efficiencies, and eliminate the potential for human error. But without the appropriate security protocols, employees could be exposed to identity theft or other harmful data collection. Implementing these technologies will demand an employer protect customer and personnel information. If employed effectively, manufacturers can gain faster insights, improve decision-making, and develop more efficient processes while avoiding the negative consequences.
Third, the adoption of AI and IoT will require the employee to evolve. A robot may not replace you, but the reality is that these technologies will disrupt current roles. Just as we saw with the previous Industrial Revolution, new technology results in a labor market shift.
These trends have caused some to worry, but as one economist stated: “Since the dawn of the industrial age, a recurrent fear has been that technological change will spawn mass unemployment. Neoclassical economists predicted that this would not happen, because people would find other jobs, albeit possibly after a long period of painful adjustment. By and large, that prediction has proven to be correct.”
Within manufacturing, and across the board, these technologies call for change. Employees must be willing to adapt and further develop their skills. It could even require learning new skills. The rise of technology demands that education become an ongoing process.
No matter how advanced technology becomes, there will always be a human element. AI still has a long way to go when it comes to assessing human emotion. And industry relies on human connection. In this rapidly changing environment, employees must never overlook the importance of maintaining personal connections—those traits that separate us from the machines.
In summary
The full magnitude of these technologies’ impact on the labor market is still to be determined. The Digital Revolution will require ongoing reliance on AI and IoT technologies.
The inevitable impact of automation on all industries is certain. But with these modern advancements comes the potential for efficient manufacturing. Organizations and employees must be willing to embrace these technologies to ensure progress into the future.
It’s almost Halloween, and if your town is anything like mine, your neighbors’ yards are already littered with ghosts, witches and tombstones.
Clearly some of us enjoy giving other people a scare. Just as clearly, some of us enjoy getting a scare.
I’m not one of them. I hate haunted houses. I avoid scary movies like the plague. And I once jumped on top of several eight-year-old members of the Girl Scout troop that I was leading in order to escape a haunted hayride’s zombie.
However, that doesn’t mean I’m not capable of (wo)manning up and facing my fears, especially it’s for a good cause, which is why ALAN’s executive director, Kathy Fulton and I recently put our heads together to create this short list of some of the scariest perceptions that people have about disasters and disaster relief.
Scary Perception Number One: “A Disaster Will Never Happen To Me.”
When people live in certain areas (i.e. far away from a hurricane-prone coast or earthquake fault lines) it’s easy for them to assume that they’re protected from many types of catastrophes – and to become dangerously casual about making disaster preparations or heeding safety warnings.
Frankly, this attitude scares the heck out of us, because if the last few years have taught us anything, it’s that disasters can take a wide variety of forms and strike at almost any time. And the people who fail to plan – or to take shelter/evacuate as requested – are much more likely to find themselves in harm’s way.
Scary Perception Number Two: “It’s Okay. The Government’s Got It Covered.”
There are so many things wrong with this second perception that it’s not even funny. For one thing, not every disaster survivor qualifies for FEMA government assistance. For another, some survivors aren’t eligible for as much government assistance as others. Plus it can take some time for FEMA to process all of the requests for assistance that it receives and to conduct all of the necessary inspections that need to be made before it can provide funds. And even then, these funds are limited.
It’s a similar story for disaster survivors who are fortunate enough to have homeowners’ or renters’ insurance.
That’s why the humanitarian response organizations that provide food, hydration, shelter and other supplies immediately after a disaster hits (and the non-profit organizations that help survivors fill in the short-term and long-term gaps that government assistance and insurance reimbursement don’t cover) are so essential. It’s also why the people who support them are an answer to prayer.
Scary Perception Three: “We’re Too Far Away To Be Of Help.”
One of the laments that we often hear from potential transportation, warehousing and material handling equipment donors is, “We’d have loved to help you with relief efforts for X community’s disaster. But we didn’t have any locations in the area.”
The sad thing is, we probably could have used their help – and so could many of the humanitarian organizations that we support.
When push comes to shove, these organizations can’t afford to split hairs about where their donated relief supplies come from, especially if those supplies extend or enable their relief efforts. They might even NEED those donations to come from another part of the country because many of their closer potential product donors may have already been tapped out.
In light of this, never underestimate the value of a long-distance contributed logistics offer. Relief supplies are often located much farther away from a disaster site than you might imagine. And the help that you’re offering might be just the ticket.
Scary Perception Four: “It’s Been A Few Months (Or Years). So Survivors Of That Particular Disaster Don’t Need Our Help Anymore.”
If individuals and communities recovered from disasters as quickly as their particular disasters stopped making headlines, life would be much easier for everyone. However as any disaster survivor can tell you, that’s rarely the case.
Disaster recovery is a super-long process that’s usually measured in months or years rather than days or weeks. And many of its costliest and most work-intensive stages like clean-up and rebuilding don’t start until long after the news and camera crews have left.
So don’t ever think that there’s no way you can help a community just because the disaster that affected it happened quite a while ago. Chances are, that’s when your compassion and assistance will be needed the most.
Scary Perception Five: “Helping With Disaster Relief Won’t Pay The Bills. As A Result, There’s Nothing To Be Gained From Our Business Making A Financial Or In-Kind Donation.”
While it may not initially seem like you have anything financial to gain from helping a community in need, nothing could be further from the truth, especially if that community is home to some of your employees, customers, suppliers or business operations.
The people who live in these communities can (and do) remember who showed up for them when times were tough – and so do many other members of the purchasing public. In fact, according to recent article in the MIT/Sloane Management Review, multiple studies have shown that corporate donations ultimately attract customers. And according to another recent article in the Harvard Business Review, consumers tend to favor companies that donate a larger share of their profits.
Is this why so many of our country’s most successful organizations are also some of the most philanthropic? Possibly. However, if that’s the case, it’s okay by us, because when generous businesses do what they can to help a community get back on its feet more quickly, everybody wins.
Fear Not
There’s far more I could add to this story. But time and Halloween-candy buying obligations don’t allow me to discuss them all. Besides, I want to end this story on a caring rather than a scaring note.
So I’ll leave you with this: Even though disasters seem to happen with frightening regularity, I’ve actually become a far braver person since joining the ALAN family several years ago. It’s taught me that when horrible things like hurricanes, tornadoes and pandemics happen, a lot of wonderful people show up to help – and reminded me that when things are at their most harrowing, there are always extraordinary people like you ready to come to the rescue.
Just don’t ask me to go on a spooky hayride anytime soon.
"Spot solutions are needed to help a company get through a sudden shock, but the only way to ensure agility and resilience going forward is by addressing systemic issues in a way that is intentional and focused on the long term and brings together clear priorities, well-designed repeatable processes, robust governance, and a skilled team." - Harvard Business Review
An article published by McKinsey & Co. in August observed, “over the past year, many companies have made structural changes to their supply networks by implementing dual or multiple sourcing strategies for critical materials and moving from global to regional networks.”
This structural change pivots on the difference between low cost and best cost. The shift extends through Tier 1 Suppliers through lower tiers. The intent of a low-cost supply chain strategy is to present a low price to customers. A best-cost strategy adds factors beyond cost to the equation, like risk, lead time, and responsiveness.
The McKinsey article continues, “Ninety-seven percent of respondents [to the survey] say they have applied some combination of inventory increases, dual sourcing, and regionalization to boost resilience.”
We offshored, losing sight of the associated risk, for decades. Time to learn what near-shore, re-shore, regionalization, and localization mean.
As global supply chains become increasingly complicated, there are now more digital connections and business collaborations in the global shipping industry than ever before. Holding freight data in opaque, disconnected silos and relying on outdated methods of communication is not just inefficient - it’s unsustainable.
The global supply chain is no longer a linear process. Whereas before it was simply about moving freight from point A to B, now there is now a multitude of options for transporting that freight, each with its own unique set of capabilities and constraints.
So, what do shippers really want from their logistics service providers? Two things: accurate information at their fingertips and the ability to conduct business and transact - without having to pick up a phone or wait for email replies. Digital customer-facing freight execution platforms are the answer, collecting the most relevant and up-to-date data from carriers on one side, and providing shippers with a simplified and accelerated process on the other.
Digital freight execution platforms also provide shippers with a unified view of their shipping options, giving them the data they need at a glance to make an informed decision for any particular shipment.
Plus, as we continue to navigate uncertain waters, shippers are increasingly seeking solutions to increase resilience. After all, if there’s anything the last few years have taught us, it’s to expect the unexpected. The organizations that were able to pivot fastest came out on top. The availability of accurate data and solutions to action that data are key building blocks to resiliency in the face of new and unexpected challenges. Supply chain optimization, especially today, hinges on accessible, up-to-the-minute data, shared and acted on to keep freight moving as successfully as possible.
Digital Freight Execution Puts Power in Shippers’ Hands
Increasingly, freight forwarders and logistics providers are giving their shipper customers access to online freight execution platforms for just this purpose.
Largely unheard of just a few short years ago, online freight execution tools for shippers have quickly emerged to become a must-have for established forwarders to compete with startup digital forwarders. Logistics providers can no longer afford to go without offering this critical customer tool which enables shippers to access crucial freight data online, including timely visibility of their freight on the move. Their shipper customers have come to expect it, and it’s what’s needed to compete in today’s market.
Traditional methods of communication between shippers and freight forwarders can be slow and inefficient. Email and phone tag are not conducive to fast decision-making, and sales representatives may not always have the most accurate information about fleets, equipment, and routes. Digital freight execution platforms enable shippers and carriers to communicate in real-time, facilitating fast decision-making while eliminating the potential for miscommunication.
As digital conveniences proliferate our day-to-day lives (think of ordering food online, tracking your latest purchase, viewing your favorite shows on-demand, and so much more), it only makes sense that we should expect similar experiences in our work lives. That means that the traditional way of working in the freight industry, fraught with manual processes, phone calls, and emails, simply doesn’t cut it in today’s digital-first world.
What’s more, with timely freight data, shippers are better equipped to quickly address exceptions by changing transportation plans. Supply chain disconnections are costly. Responding to exceptions is critical to a smooth-running supply chain where shipments arrive at their final destination as planned.
“An organization's ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage,” Jack Welch
One of the outstanding things about a digital freight platform is the ability to integrate various functional modules to enable shipment data to be used and shared. These may include tracking and visibility, warehouse inventory, ocean shipments, freight rates, and even finance information, enabling a shipper to pay invoices online. Customer-facing online portals are an important and effective way to facilitate a shippers’ access to key shipment information, improving visibility and productivity on all fronts.
Partnering for Sustainable Success
Partner programs are another important aspect of connected digital freight platforms. This openness to integrate with a broad range of shipping industry businesses, such as technology or service providers, offers shippers the ability to access their partners through their forwarders’ customer-facing freight execution portal. This enables the shipper to have a comprehensive and complete flow of key freight data based on their unique needs and partners.
For example, if a shipper is using a real-time transportation visibility (RTTV) system provider, they can work with their forwarder to integrate the RTTV solution with the forwarder’s digital platform. This is only possible when the forwarder has a partner program enabling integrations.
All parties involved with a shipment can boost productivity and enhance value for the customer when they’re digitally integrated with freight transaction operational areas and partner providers. Technology companies who try to wall off access to the data they manage for their customers and their functionality have it backwards: they might create an appearance of their own business interests being protected in the short term, but long term, they’re either going to hurt their customers, or, more likely, their own product development roadmap.
Recent supply chain challenges have pushed BCO shippers and their logistics partners to take a much closer look at cargo flows. Accessible, convenient, and transparent freight data is now the expectation and necessary to control costs and keep cargo in view for optimal supply chain management.
Digital freight execution is the wave of the future, and it's already making a big impact in the shipping industry. Streamlining data flows by building out connectivity helps to bring greater logistics harmony that allows shippers to optimize their overall freight ecosystem.
America’s posture in world trade, and the underlying supply chains, are more than robust. According to the U.S. Census Bureau and the U.S. Bureau of Economic Analysis, the United States balance of trade in goods and services deficit dropped to $70.6 billion in July. Exports hit the highest level in real dollars since tracking began over 70 years ago. During the recovery from Covid,, with reshoring and shifting market demands, are holding imports flat..
This success is happening despite the global disruption caused by Ukraine. Expect our labor shortages to continue. Expect wage pressure to continue. Expect inflationary pressures across the supply chain to continue.